How to Avoid Mediocre Leadership in Trying Times
Connect with us

Markets

How to Avoid Mediocre Leadership in Trying Times

Published

on

In today’s complex world, leaders are being asked to step up in dynamic and unexpected ways.

Unfortunately, many of them are not equipped with the tools they need to lead under pressure. As a result, they fail to serve themselves and their employees effectively, and put the future of their entire organization at risk.

The Behaviors That Result in Mediocre Leadership

Today’s infographic from Vince Molinaro’s Accountable Leaders reveals the common behaviors that can result in leaders becoming mediocre due to mounting day-to-day pressures.

mediocre leadership infographic

Order Vince Molinaro’s new book, Accountable Leaders

Leadership accountability is one of the most important ingredients for driving business growth and maintaining a healthy corporate culture.

How can leaders set the tone for accountability in their organization?

Accountable Leaders Invest in Themselves

Every leader has an obligation to their employees, their customers and their community, but failing to put themselves first could have serious consequences—and cause a ripple effect across other parts of the business.

In fact, 40% to 80% of a manager’s time is spent on activities that add little to no value, when the majority of their time should be spent investing in their personal development.

By not having a holistic view of their development, leaders succumb to the day-to-day challenges that come with managing a company, such as:

  • Getting in over their head
  • Confusing acting rough with tough
  • Mistaking effort for results
  • Feeling like the victim
  • Being insecure and unable to use their voice
  • Constantly needing to hear good news
  • Needing to win at all costs
  • Waiting for permission to act from senior leaders
  • Being driven to distraction and lacking focus
  • Not learning from past mistakes

Moreover, if leaders struggle to meet expectations, the risk is that they either give up, or ultimately become a mediocre leader—but what exactly does that look like?

The Characteristics of a Mediocre Leader

Mediocre leadership has become remarkably commonplace, yet it is not always easy for organizations to identify.

Here are the five problematic characteristics of a mediocre leader:

  1. Blames others: Never personally acknowledges their role or contribution to any mistake or failure.
  2. Selfish and self-serving: Regularly acts out of self-interest and brings a sense of entitlement to the role.
  3. Uncivil and mean: Routinely mistreats, demeans and insults others, usually in public.
  4. Inept and incompetent: Makes bad decisions, resulting in a trail of disaster behind them.
  5. Lacks initiative: Looks for the easy way out by deflecting responsibility.

Leaders cite several reasons for falling into this mediocre leadership trap, including their fear failure, having unclear leadership expectations, and being overloaded with tasks that could be delegated elsewhere.

The Danger of Mediocre Leadership

It comes as no surprise that this style of leadership has a negative impact on employees, with 73% claiming that they spend a significant amount of time dealing with problems that arise from an ineffective manager.

However, employees will put up with a mediocre leader because they find the work itself meaningful, or they value the relationship they have with their peers.

But while mediocre leaders can bring a team closer together through their collective misery, eventually this reaches a tipping point which could result in a high staff turnover or low rates of employee engagement.

Avoid a Culture of Mediocrity

As we navigate uncertain waters, leaders must not only demonstrate agility and resilience—they must also advocate for a culture of accountability.

”Senior leaders create the culture and set the tone for the organization. It’s imperative that they drive the set of behaviors influencing the behaviors of the next line leaders.”

—Molinaro, Vince (2020), Accountable Leaders.

But in order to maintain accountability across an organization, mediocre behavior must be addressed, and difficult decisions will need to be made.

Click for Comments

Markets

The Biggest Tech Talent Hubs in the U.S. and Canada

6.5 million skilled tech workers currently work in the U.S. and Canada. Here we look at the largest tech hubs across the two countries

Published

on

The Biggest Tech Talent Hubs in the U.S. and Canada

The tech workforce just keeps growing. In fact, there are now an estimated 6.5 million tech workers between the U.S. and Canada — 5.5 million of which work in the United States.

This infographic draws from a report by CBRE to determine which tech talent markets in the U.S. and Canada are the largest. The data looks at total workforce in the sector, as well as the change in tech worker population over time in various cities.

The report also classifies which metro areas and regions can rightly be considered tech hubs in the first place, by looking at a variety of factors including cost of living, average educational attainment, and tech employment levels as a share of different industries.

The Top Tech Hubs in the U.S.

Silicon Valley, in California’s Bay Area, remains the most prominent (and expensive) U.S. tech hub, with a talent pool of nearly 380,000 tech workers.

Here’s a look at the top tech talent markets in the country in terms of total worker population:

🇺🇸 MarketTotal Tech Talent% Talent Growth (2016-2021)
SF Bay Area378,87013%
New York Metro344,5203%
Washington D.C. 259,3106%
Los Angeles235,80010%
Seattle189,57032%
Dallas/Ft. Worth187,95015%
Chicago167,5606%
Boston166,4502%
Atlanta145,0807%
Denver117,62023%
Philadelphia115,450 7%
Minneapolis100,9905%
Phoenix99,60018%
Houston98,930-2%
Detroit 93,7705%
Austin 84,68021%
Baltimore79,0008%
San Diego77,780 16%
Raleigh/Durham69,05011%
Portland67,410 28%
South Florida66,660 8%
Charlotte61,95022%
Salt Lake City55,93029%
St. Louis53,9102%
Kansas City52,5000%
Tampa 52,24013%
Columbus50,3904%

America’s large, coastal cities still contain the lion’s share of tech talent, but mid-sized tech hubs like Salt Lake City, Portland, and Denver have put up strong growth numbers in recent years. Seattle, which is home to both Amazon and Microsoft, posted an impressive 32% growth rate over the last five years.

Emerging tech hubs include areas like Raleigh-Durham. The two cities have nearly 70,000 employed tech workers and a strong talent pipeline, seeing a 28% increase in degree completions in fields like Math/Statistics and Computer Engineering year-over-year to 2020. In fact, the entire state of North Carolina is becoming an increasingly attractive business hub.

Houston was the one city on this list that had a negative growth rate, at -2%.

The Top Tech Hubs in Canada

Tech giants like Google, Meta, and Amazon are continuously and aggressively growing their presence in Canada, further solidifying the country’s status as the next big destination for tech talent. Here are the country’s four tech hubs with a total worker population of more than 50,000:

🇨🇦 MarketTotal Tech Talent% Talent Growth (2016-2021)
Toronto289,70044%
Montreal148,90027%
Vancouver115,40063%
Ottawa81,20022%

Toronto saw the most absolute growth tech positions in 2021, adding 88,900 jobs. The tech sector in Canada’s largest city has seen a lot of momentum in recent years, and is now ranked by CBRE as North America’s #3 tech hub, after the SF Bay Area and New York City.

Vancouver’s tech talent population increased the most from its original figure, climbing 63%. Seattle-based companies like Microsoft and Amazon have established sizable offices in the city, adding to the already thriving tech scene. Furthermore, Google is set to build a submarine high-speed fiber optic cable connecting Canada to Asia, with a terminus in Vancouver.

Not to be left behind, Ottawa has also taken giant strides to increase their tech talent and stamp their presence. The country’s capital even has the highest concentration of tech employment in its workforce, thanks in part to the success of Shopify.

Map showing tech employment concentration in the U.S. and Canada

The small, but well-known tech hub of Waterloo also had a very high concentration on tech employment (9.6%). The region has seen its tech workforce grow by 8% over the past five years.

Six out of the top 10 cities by tech workforce concentration are located in Canada.

Evolution of Tech Hubs

The post-COVID era has seen a shifting definition of what a tech hub means. It’s clear that remote work is here to stay, and as workers migrate to chase affordability and comfort, traditional tech hubs are seeing some decline — or at least slower growth — in their population of tech workers.

While it isn’t evident that there is a mass exodus of tech talent from traditional coastal hubs, the rise in high-paying tech jobs in smaller markets across the country could point to a trend and is positive for the industry.

While more workers with great talent, resources, and education continue to opt for cost-friendly places to reside and work remotely, will newer markets like Charlotte, Tennessee, and Calgary see a rise of tech companies, or will large corporations and startups alike continue to opt for the larger cities on the coast?

Continue Reading

Markets

Animation: Visualizing U.S. Interest Rates Since 2020

U.S. interest rates have risen sharply after sitting near historic lows. This animation charts their trajectory since 2020.

Published

on

Visualizing Interest Rates Since 2020

In March 2020, the U.S. Federal Reserve cut already depressed interest rates to historic lows amid an unraveling COVID-19 pandemic.

Fast-forward to 2022, and the central bank is grappling with a very different economic situation⁠ that includes high inflation, low unemployment, and increasing wage growth. Given these conditions, it raised interest rates to 2.25% up from 0% in just five months.

The above visualization from Jan Varsava shows U.S. interest rates over the last two years along with its impact on Treasury yields, often considered a key indicator for the economy.

Timeline of Interest Rates

Below, we show how U.S. interest rates have changed over the course of the pandemic:

DateFederal Funds Rate (Range)Rate Change (bps)
July 27, 20222.25% to 2.50%+75
June 16, 20221.50% to 1.75%+75
May 5, 20220.75% to 1.00%+50
March 17, 20220.25% to 0.50%+25
March 16, 20200.00% to 0.25%-100
March 3, 20201.00% to 1.25%-150

In early 2020, the Federal Reserve cut interest rates from 1% to 0% in emergency meetings. The U.S. economy then jumped back from its shortest recession ever recorded, partially supported by massive policy stimulus.

But by 2022, as the inflation rate hit 40-year highs, the central bank had to make its first rate increase in over two years. During the following Federal Reserve meetings, interest rates were then hiked 50 basis points, and then 75 basis points two times shortly after.

Despite these efforts to rein in inflation, price pressures remain high. The war in Ukraine, supply disruptions, and rising demand all contribute to higher prices, along with increasing public-debt loads. In fact, a Federal Reserve estimate suggests that inflation was 2.5% higher due to the $1.9 trillion stimulus, an effect of “fiscal inflation.”

Impact on the Treasury Yield Curve

The sharp rise in interest rates has sent shockwaves through markets. The S&P 500 Index has steadily declined 19% year-to-date, and the NASDAQ Composite Index has fallen over 27%.

Bond markets are also showing signs of uncertainty, with the 10-year minus 2-year Treasury yield curve acting as a prime example. This yield curve subtracts the return on short-term government bonds from long-term government bonds.

When long-term bond yields are lower than short-term yields—in other words, the yield curve inverts—it indicates that markets predict slower future growth. In recent history, the yield curve inverting has often signaled a recession. The table below shows periods of yield curve inversions for one month or more since 1978.

Yield Curve Inversion DateNumber of MonthsMaximum Difference (10 yr - 2 yr bps)
Aug 197821 -241
Sep 198013 -170
Jan 19824 -71
Jun 19821 -34
Dec 19886 -45
Aug 19892 -18
Jun 19981 -7
Feb 200010 -51
Feb 20061 -16
Jun 20061 -7
Aug 20067-19
Jul 20222*-48

*Data as of September 9, 2022
Source: Federal Reserve

For example, the yield curve inverted in February 2000 to a bottom of -51 basis points difference between the 10-year Treasury yield and the 2-year Treasury yield. In March 2001, the U.S. economy went into recession as the Dotcom Bubble burst.

More recently, the yield curve has inverted to its steepest level in two decades.

This trend is extending to other countries as well. Both New Zealand and the UK’s yield curves inverted in August. In Australia, the yield spread between 3-year and 10-year bond futures—its primary measure—was at its narrowest in a decade.

What’s On the Horizon?

Sustained Treasury yield inversions have sometimes occurred after tightening monetary policy.

In both 1980 and 2000, the Federal Reserve increased interest rates to fight inflation. For instance, when interest rates jumped to 20% in 1981 under Federal Reserve Chairman Paul Volcker, the U.S. Treasury yield inverted over 150 basis points.

This suggests that monetary policy can have a large impact on the direction of the yield curve. That’s because short-term interest rates rise when the central bank raises interest rates to combat inflation.

On the flip side, long-term bonds like the 10-year Treasury yield can be affected by growth prospects and market sentiment. If growth expectations are low and market uncertainty is high, it may cause yields to fall. Taken together, whether or not the economy could be headed for a recession remains unclear.

Continue Reading

Subscribe

Popular